The market traded in very narrow ranges yesterday…and after all was said and done the S&P 500 had the ignominious “honor” of ending lower for the fourth straight day. This is the first such occurrence since March. We continued to see a little reversal of the recent pattern from last week when the DOW exploded to new record all-time highs while the NASDAQ and its heroes this year were clobbered.

The main reason that tech stocks underwent their recent period of weakness is that they would ostensibly benefit the least from the new tax cuts. In addition, there is the issue of the corporate Alternative Minimum Tax. This was supposed to be repealed…but now there is some signal that it will be retained.

Today, after four lower days, the S&P 500 is about to break its losing streak and get on the winning path. The NASDAQ is leading the way higher while the DOW is catching up. All of the major indices are showing good gains ahead of tomorrow’s jobs report…and the potential running out of money by the government tonight.

With 45 minutes left to the closing bell today, the DOW is up by 64 after being ahead by 100, the S&P is higher by 7, and the NASDAQ is doing the best with a 34 point advance. The high-flying tech leaders are doing better once again. The DOW is being helped by gains in BA, at a new high, HD, V, and GS.

Breadth numbers are positive at almost 2 to 1 upside ratio. The VIX is down by .69 to 10.33. Following its fast move to over 14 during the panic selling a week ago Friday, the VIX is starting to settle down and move closer to its ultimate downside support at 9.12.

Donald M. Selkin

These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning.  The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report.  This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities.  This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm.  This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author.  These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.